Hormel Foods vs J.M. Smucker
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KIRA’s take AI analyst
I put Hormel Foods and J.M. Smucker side by side, using each one’s latest annual report. Here is what stands out:
- Hormel Foods is the larger business, with $12.1B of revenue in fiscal 2025 against $9.1B for J.M. Smucker.
- J.M. Smucker grew revenue faster (3.7%, against 1.6%).
- Hormel Foods kept more of each dollar of sales as operating profit (5.9% operating margin, against 4.0%).
- J.M. Smucker turned more of its sales into free cash flow (12.8% FCF margin, against 4.4%).
- Hormel Foods earned a higher return on the capital invested in it (5.1%, against 2.2%).
- Investors pay more for each dollar of J.M. Smucker’s earnings: a P/E of 60.1x against 33.3x for Hormel Foods.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Hormel Foods
HRL
6/9
5-year growthOperating marginNet marginReturn on capitalReturn on equityNet debt / EBITDA
J.M. Smucker
SJM
3/9
Revenue growthGross marginFCF margin
Side by side
Best in the row
| Latest fiscal year | HRL FY25 | SJM FY26 |
|---|---|---|
| Size | ||
| Market cap | $11.5B | — |
| Revenue | $12.1B | $9.1B |
| Free cash flow | $534M | $1.2B |
| Net income | $478M | −$139M |
| Growth | ||
| Revenue growth | 1.6% | 3.7% |
| 5-year growth | 4.7% | 2.5% |
| Share count change | 0.3% | — |
| Profitability | ||
| Gross margin | 15.6% | 33.5% |
| Operating margin | 5.9% | 4.0% |
| Net margin | 4.0% | −1.5% |
| FCF margin | 4.4% | 12.8% |
| Return on capital | 5.1% | 2.2% |
| Return on equity | 6.0% | −2.4% |
| Balance sheet | ||
| Net debt | $2.2B | $6.9B |
| Net debt / EBITDA | 2.2x | 7.5x |
| Dividends and buybacks | $633M | $470M |
| Valuation & quality | ||
| P/E | 33.3x | 60.1x |
| Piotroski F-score | 5 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.